An Incredible Tax Savings and Return Potential, with a Proven Technology
LAS VEGAS, January 9, 2019 (GLOBE NEWSWIRE) — Vivakor, Inc. (OTC: VIVK), a technology and asset acquisition company with a focus in the area of natural resources, has recently created a Qualified Opportunity Zone Fund, Viva Opportunity Fund, LLC, which has invested and will continue to invest in Remediation Processing Centers Design and Manufacturing, LLC (RPC), which is an Opportunity Zone designated business in Utah, creating enormous tax savings and return potential for its investors.
“We have received a tremendous amount of investor interest. Not just because of the amazing, potential tax savings and returns that opportunity zones can create, but also because this company has actually developed a proven technology,” stated Vivakor Chief Executive Officer Matt Nicosia. “After having conducted multiple, successful pilots, the company is now scaling its proprietary technology in both the highly profitable global remediation and hydrocarbon extraction industries. We are excited to be doing this in an opportunity zone where our investors can not only benefit, but the workforce will too with the scores of new manufacturing jobs we plan on adding.”
Vivakor is contracting with RPC to build its patent pending technology for remediation and extraction of Hydrocarbons from soil material. The Company is expected to launch its fully scaled RPC unit in the first quarter of 2019, with the production of up to 30 units in the next 24 months to support its business in their Fundamental Revenue Growth phase. Vivakor operates the RPC’s through its VivaVentures Energy Group Inc. division currently operating in Utah and Kuwait. The need for RPC’s throughout the world applies to any hydrocarbon mixed in soil remediation and certain Oil Sands operations.
“For our investors, this deal makes any of their capital gains investments eligible for tax deferral through 2026, and if they hold the investment for 10 years, any realized gain on the sale of their position will be entirely income tax free”, continued Nicosia. “Any investor will additionally receive a K-1 deduction of up to 80% of their investment immediately, for all of the non-capitalized expenses associated with each RPC. That’s up to a 180% tax shield.”
In addition to the substantial tax saving potential, investors would also be eligible for royalties of 25% of the production on each RPC. Each RPC is projected to generate between $5-6 million per year, or a royalty stream of $1.25 to $1.5 million annually. The investment may also be converted to Vivakor’s publicly traded stock, allowing for a high level of flexibility and liquidity.
About Vivakor, Inc.
Vivakor, Inc. (VIVK), a technology and asset acquisition company with a focus in the area of natural resources. Vivakor’s corporate mission is to create, acquire and accumulate distinct assets, intellectual properties, and exceptional technologies that produce solid returns to its valued shareholders and partners. The company currently focuses on bitumen (heavy crude) extraction from shallow, oil-laden areas in Eastern Utah, along with petroleum based remediation projects across the globe. The technologies utilized are low-cost, proprietary and proving themselves industry disruptive when measured by a number of important factors. The general business model has been to be an acquisition hub, focused on building and acquiring cash-flowing assets in discrete areas that have an acknowledged technological advantage and enable a substantial market opportunity within significant target markets across the globe. Our research, and the technology we acquire are anchored by our relationships with synergistic partners and product-specific commercialization strategies. From the point of product or technology conception, or through acquisition, development and commercialization, we expect to have strategic partners, joint ventures or licensing arrangements in place for many of our products in order to sustain revenue attainment.
For more information, please visit our website: https://vivakor.com
This news release may contain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based upon our current expectations and speak only as of the date hereof. Our actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including economic slowdown affecting companies, our ability to successfully develop products, rapid change in our markets, changes in demand for our future products, legislative, regulatory and competitive developments and general economic conditions. These risks and uncertainties include, but are not limited to, risks and uncertainties discussed in Vivakor’s filings with the Securities and Exchange Commission, which factors may be incorporated herein by reference. Forward-looking statements may be identified but not limited by the use of the words “anticipates,” “expects,” “intends,” “plans,” “should,” “could,” “would,” “may,” “will,” “believes,” “estimates,” “potential,” or “continue” and variations or similar expressions. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.